Homework and local knowledge make this Falkirk buy to let property a winner

Purchasing a buy to let property that makes financial sense often requires a bit of homework to find out what the seller is likely to be thinking and a bit of local knowledge.  Today’s buy to let opportunity from The Falkirk Property Blog is a perfect example of this.

Last week we highlighted a 2 bed buy to let flat in Victoria Street that had a few complications so needed a patience, ‘nouse’ and negotiating skills to make a successful purchase (see blog post dated 23 May 2016 entitled ‘Patience, ‘nouse’ and negotiating skills needed for this modern Falkirk buy to let opportunity).

Today’s buy to let opportunity is a 1 bed flat in the same complex at 45 Victoria Street.  The property is a top floor, 1 bed flat that is in walk in condition.  Victoria Road is between the back of the Retail Park and Victoria Park.

Double click here to get more details about this property

The property is on the market with JSB Gillespie & Co for offers over £52,500 so let’s say it goes for £57,500 – £60,000.  The property will rent easily and you could expect to get £395 per month in rent.  So that gives you a yield of 7.9-8.2% which is a decent return given the relatively low maintenance age of the property.

So now to the homework and the local knowledge.

Firstly the homework.  45 Victoria Street has been on the market since October 2015 which is an awfully long time in the current market and there must be a reason for this!  Well there is.  My homework has discovered that this property has been bought 3 times since it was built – it was bought for £38,000 in July 2003, for £51,500 in January 2005 and £67,500 in May 2007.  May 2007 was at the height of the last property boom so the current owners are looking at making a loss on the property and I know from personal experience how difficult this is for a seller to accept .... but also how futile for a seller not to accept as the market is always right.  Given that the property has been on the market for over 8 months now, the seller is probably at the stage now where they are feed up not being able to sell the house so are likely to be becoming more realistic about price.  It is worth checking that this is the case by having a chat with JSB Gillespie ..... there is no point in looking at this property unless the price is way below what the current owners paid for the property.

Secondly the local knowledge.  Doing the sums on 45 Victoria Street shows that you can get a decent return on this property which makes the Victoria Street property highlighted on last weeks The Falkirk Property Blog – which was a 2 bed flat for a similar price – look even more worth the patience, ‘nouse’ and negotiating skills to make a successful purchase!

If you like the look of this one, get in touch for a chat (6 Vicar Street, Falkirk; 01324 469840; falkirk@thekeyplace.co.uk).  If you want to have a chat about another property you have seen, get in touch as well and I will give you my impartial advice about the property.